Automotive Aftermarket

Pathetic road conditions and an ever growing number of vehicles plying on the roads have led to a tremendous surge in the Indian automotive aftermarket like never before. More than five million multi-utility, passenger and commercial vehicles were sold in the last decade. But unfortunately, due to bad roads and low quality fuel there has been a rapid wear and tear of these vehicles particularly in their steering, brake, suspension and engine systems. Consequently, the owners are facing the brunt and have to replace the parts to keep the vehicle in good condition resulting in a swelling demand for aftermarket components.

There is a very strong potential for both the component manufacturers and the vehicle manufacturers in the Indian aftermarket. No doubt then that the component manufacturers and the vehicle manufacturers compete against each other and also with other brands to gain a fair share of the market. For this reason, the need for competitive pricing comes in, which has to be followed through keeping in mind the spending power of the Indian consumers.In this respect, coupling lower prices with more features and dynamic distribution channels are definitely going to stand out and help the component manufacturers and vehicle manufacturers in a big way.

But on the flip side, as much as 45 percent aftermarket sales for passenger car sector and 15 percent aftermarket sales for commercial vehicle sector have been hit by counterfeit components. In this respect, a key role is played by the mechanics and suppliers. Customers, unable to distinguish between the original and duplicate products, often buy these spurious articles, but in the process the component manufacturers and the vehicle manufacturers face the music and their revenues get affected heavily.

In the near future, the threat of spurious parts is going to diminish gradually, as the component manufacturers and the vehicle manufacturers are working constantly towards increasing customer awareness. Stricter legal penalties are being implemented by the Government to keep a check on this growing nuisance. And last but not the least, one can expect better services and technologically advanced products in this dynamic sector in the near future.